Singapore-based 1982 Ventures has participated in a $400 million Series B funding round for US AI startup Higgsfield, valuing the company at $5.4 billion. The round was led by DST Global and saw significant participation from both new and existing investors.
TL;DR
- 1982 Ventures invests in Higgsfield's $400M Series B round, valuing the company at $5.4B.
- Higgsfield's generative AI tools have reached $700M in annualized revenue and are used by 390 Fortune 500 companies.
- The investment marks 1982 Ventures' first major foray into a later-stage AI company outside Southeast Asia.
What happened
1982 Ventures, a Singapore-based venture capital firm, has backed US AI startup Higgsfield in its $400 million Series B round. The round was led by DST Global and valued Higgsfield at $5.4 billion, a significant increase from its $1.3 billion valuation in January. 1982 Ventures participated through its Fund II, with other investors in its network also given co-investment access.
New investors in the round included Goldman Sachs Alternatives, Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Intel Capital, Liberty Global Tech Ventures, Mirae Asset Capital, and NTT DOCOMO Ventures. Existing backers such as Accel, Menlo Ventures, AI Capital Partners, and others also participated. Higgsfield develops generative AI tools for creating videos and images, with a reported $700 million in annualized revenue as of August and over 30 million users globally.
Why it matters
This investment marks a strategic shift for 1982 Ventures, which has historically focused on early-stage fintech and technology investments in Southeast Asia. The deal gives Fund II exposure to a later-stage AI company operating well beyond the region, highlighting the firm's expanding investment scope.
For Higgsfield, the proceeds will be used to expand research and development, infrastructure, AI hiring, and global sales. The company's technology is already being used by 390 Fortune 500 companies, indicating strong enterprise adoption and market traction. The investment comes amid a broader surge in AI funding across Asia, with startups raising significant capital despite increasing investor selectivity.
Key facts
- Higgsfield's Series B round raised $400 million, valuing the company at $5.4 billion.
- The round was led by DST Global and saw participation from 1982 Ventures, Goldman Sachs Alternatives, and other notable investors.
- Higgsfield reported $700 million in annualized revenue as of August.
- The company has over 30 million users globally and is used by 390 Fortune 500 companies.
- 1982 Ventures participated through its Fund II, with other investors in its network also given co-investment access.
- The investment marks 1982 Ventures' first major foray into a later-stage AI company outside Southeast Asia.
- Higgsfield will use the proceeds to expand research and development, infrastructure, AI hiring, and global sales.
- Asia's AI startups have raised at least $20.3 billion in disclosed capital by mid-June, with Greater China accounting for about 90% of that total.
Context
The AI industry continues to attract significant investment, with startups across various regions raising substantial capital. However, investors are becoming more selective, focusing on revenue quality, customer adoption, and meaningful traction beyond headline growth. This shift reflects the maturing of the AI investment landscape, where companies must demonstrate real value to secure funding.
For 1982 Ventures, the investment in Higgsfield represents a strategic expansion into later-stage AI companies and a geographic diversification beyond Southeast Asia. This move aligns with the firm's goal of backing generational businesses at the leading edge of AI, with real revenue and enterprise adoption.
Higgsfield's strong market position and impressive user base underscore the growing demand for generative AI tools. The company's ability to attract top-tier investors and secure significant funding highlights its potential to become a key player in the AI industry.